DATATEC LIMITED - Year-end trading statement

Year-end trading statement

Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
(“Datatec” or “the Group”)

Year-end trading statement

Datatec Limited (“Datatec” or the “Group”, JSE and LSE: DTC), the international Information and
Communications Technology (ICT) group, is today publishing a trading statement for the year
ended 29 February 2016 (“FY16”).

The significant strengthening of the US dollar and mixed global economic conditions outlined in
the Group’s interim management statement on 27 January 2016 (“IMS”) have persisted through
the last two months of the financial year. As a result, Group revenues for FY16 are expected to
be $6.5 billion, which is in line with the prior year (“FY15”).

Group gross margins have improved in H2 FY16 and are expected to be approximately 13.5% for
FY16, up from 13.1% in H1 FY16.

As anticipated, Group operating profit in FY16 was impacted by the strength in the US dollar
(reporting currency), on-going restructuring in Westcon EMEA and Logicalis UK and foreign
exchange losses, particularly in Angola. The restructuring actions are expected to deliver
operating improvements while mitigating actions in Angola have already taken effect. The Group
has increased its provision against trade receivables to reflect the weaker economic conditions in
some markets.

The Group expects earnings before interest, taxation, depreciation and amortisation (“EBITDA”)
in H2 FY16 to be marginally above H1 FY16, which is in line with expectations communicated in
the IMS. EBITDA in FY16 is expected to be approximately 22% below the $206.4 million for
FY15.

The Group is expected to have an abnormally high effective rate of tax as a result of the Angola
foreign exchange losses and trading losses in other areas for which no deferred tax asset has
been recognised at the year end.

In terms of the JSE Limited Listings Requirements, companies are required to publish a trading
statement as soon as they are satisfied that a reasonable degree of certainty exists that the
financial results for the period to be reported upon next will differ by at least 20% from those of
the previous corresponding period. Accordingly, shareholders are advised that:

    -   underlying earnings per share* will be approximately 31 US cents for FY16, which is 26%
        lower than the 41.8 US cents reported for FY15;
    -   headline earnings per share will be approximately 18 US cents, which is 51% lower than
        the 37.0 US cents reported for FY15; and
    -   earnings per share will be approximately 18 US cents, which is 51% lower than the 37.1
        US cents reported for FY15.

The Board expects to maintain the full year dividend in line with previous years.

The Group expects to publish its results for the year to 29 February 2016 on Wednesday,
11 May 2016.

The financial information on which this statement is based has not been reviewed and reported
on by Datatec’s external auditors.

* Excluding impairment of goodwill and intangible assets, profit or loss on sale of investments and
  assets, amortisation of acquired intangible assets, unrealised foreign exchange movements,
  acquisition related adjustments, fair value movements on acquisition-related financial instruments
  and the taxation effect on all of the aforementioned.

Enquiries:

Datatec Limited (www.datatec.co.za)
Jens Montanana – Chief Executive Officer                            +44 (0) 1753 797118
Jurgens Myburgh – Chief Financial Officer                           +27 (0) 11 233 3301
Wilna de Villiers – Investor Relations Manager                      +27 (0) 11 233 1013


Jefferies International Limited – Nominated Adviser and Broker
Nick Adams/Alex Collins                                            +44 (0) 20 7029 8000


finnCap – Broker
Stuart Andrews                                                     +44 (0) 20 7220 0500


Instinctif Partners
Frederic Cornet/Pietman Roos (SA)                                   +27 (0) 11 447 3030
Adrian Duffield/Chantal Woolcock (UK)                              +44 (0) 20 7457 2020



Sandton
26 April 2016

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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